Some of these inverse gold ETFs employ leverage, which magnifies daily gains and losses. Leveraged and inverse ETFs are volatile and geared to short-term traders — the funds are not designed to be buy-and-hold investments.

ProShares UltraShort Gold lost more than 5% on Monday as gold futures rose and briefly traded over $1,900 an ounce.

SPDR Gold Shares (NYSEArca: GLD) has overtaken SPDR S&P 500 ETF (NYSEArca: SPY) as the largest ETF due to inflows and the climb in gold prices. The gold fund holds $76.7 billion in assets.

ProShares Ultrashort Gold

Chart source: StockCharts.com.


For more information on gold, visit our gold category.

Max Chen contributed to this article.

Full disclosure: Tom Lydon’s clients own GLD.

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